- Cardano price to observe sideways movement at the current level.
- The closest support level lies at $0.3400.
- ADA faces resistance in climbing above the $0.3750 mark.
Cardano price has been trading inside a narrow range for the past few days as the price action fails to make a breakout in either direction. The trade volume has dwindled in recent days as both the buying and selling pressure decreases.
The broader cryptocurrency market observed a bearish change across the last 24 hours as most major cryptocurrencies recorded losses across the period. These included Bitcoin and Ethereum that recorded a 4.67 and a 4.50 percent decline across the last 24 hours. However, some altcoins like Ripple’s XRP recorded significant bullish movement.
Across the technical indicators, the MACD has exhibited a bearish reversal with the histograms turning red. Similarly, the two EMAs have converged but now show sharp divergence as they move in opposite directions. However, if the price continues holding above the $0.3400 mark, the indicator will suggest another reversal back to the bullish side.
The RSI has remained neutral since the 17th of January as Cardano price observes oscillatory motion around the $0.3500 mark. The indicator was hanging low and going further down before the price action found support at $0.3400. Since then, the indicator’s slope has reduced significantly, suggesting bullish pressure at the current price level.
The Bollinger bands are currently narrow and show further convergence as the price continues to trade near the indicator’s mean line. This suggests low volatility, and while the inclined bottom line is a bullish sign, the upper limit remains horizontal, suggesting strong resistance. The indicator suggests further consolidation at the current level before a breakout.
Overall, the four-hour technical analysis issues a sell signal of reasonable strength as 10 of the 26 major technical indicators support a negative price action. On the other hand, only six indicators issue buy signals suggesting an upwards movement—the remaining 10 indicators are neutral, suggesting no support towards either side.
The 24-hour technical analysis contradicts this sentiment as the analysis shows 12 indicators favor a positive price action compared to five suggesting a bearish pullback. Similar to the 4-hour analysis, a large percentage of indicators show a neutral sentiment suggesting an indecisive outlook.
What to expect from Cardano price?
Traders should expect Cardano price to continue its consolidation around the $0.350 level. The strong resistance level does not allow ADA to climb above the $0.375 mark while the buyers continue to defend the $0.300 support level. Along with the mixed technical analyses and the relatively low trade volume, ADA can be expected to continue trading within the margins.
Conversely, if Cardano price fails to hold above the $0.300 level, ADA may revisit the $0.250 support level. In that case, ADA can be expected to initiate a bull rally breaking above the $0.375 to the $0.400 mark.
As most altcoins shadow Bitcoin’s movements, it is unlikely for them to observe a major breakout unless Bitcoin leaves the $30,000 level.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.